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Nikkei Asia
3 days ago
- Business
- Nikkei Asia
Letter from Nikkei Asia's editor: Asian leaders gather for Nikkei Forum as globalization frays
Hello from Tokyo. This week, Nikkei hosted our flagship annual conference, the Future of Asia forum. Political leaders from across the region, including Japanese Prime Minister Shigeru Ishiba, Cambodian Prime Minister Hun Manet and Bangladesh's interim leader Muhammad Yunus, attended the event. The conference marked its 30th anniversary this year, and Asia's economic and international landscape has undergone significant changes over the past three decades. Thirty years ago, I was a student preparing to leave Japan to study in the U.S., and the few years I spent at a university there -- one that welcomed many international students from Asia -- had a profound impact on my life. The Internet revolution, which gained momentum while I was studying abroad, made it easier than ever for people around the world to communicate. It was around that time that economic globalization, particularly in Asia, began to rapidly accelerate following China's entry to the World Trade Organization in 2001. When I was in Silicon Valley from 2006 to 2010 as a Nikkei correspondent, I interviewed many engineers and entrepreneurs who had moved there from Asia. The world felt exactly as Thomas Friedman described in his seminal book, "The World Is Flat." With the U.S.-China trade war and conflicts erupting around the world, the situation in Asia has unfortunately become increasingly siloed. Nations are struggling to strike a balance between the two superpowers. The administration of President Donald Trump is making it more difficult for international students to study in the U.S., alarming many students from Asia. What direction will Asian nations take over the next 30 years? To get a clearer picture, I encourage you to log on to Nikkei Asia and read what the region's political leaders had to say at the Future of Asia conference. My suggested reads 1. Uncertainty lingers over Indonesian President Prabowo Subianto's ambitious spending plans, as inflationary trade policies under U.S. President Donald Trump rattle global bond markets. While strong domestic bond ownership and healthy forex reserves offer some stability, the impact of tariffs on government revenue -- combined with Indonesia's legal cap on budget deficits -- could constrain Prabowo's fiscal agenda. 2. Thailand is trying to leverage its cuisine's global reputation to become an international hub for halal food production and exports. It is 10 months into a five-year drive to break into the world's top five global halal exporters by 2028 and become the "Halal Hub of ASEAN" by the previous year. The kingdom's tourism authorities are also supporting the initiative because they see it as a way to attract more visitors from Muslim-majority nations. 3. China's Huawei is behind efforts to build a chip chemical company capable of rivaling global leaders like Shin-Etsu Chemical, JSR, Merck, DuPont and Dow, Nikkei Asia has learned. The aim is to turn recently founded Zhuhai Cornerstone Technologies Co. into an "end-to-end" supplier, part of a radical attempt to develop a fully self-sufficient domestic chip supply chain. 4. South Korea will elect a new president on June 3 after exactly six months of chaos triggered by conservative former leader Yoon Suk Yeol's failed move last December to impose martial law. As polls point to a win for the progressive Democratic Party candidate, Lee Jae-myung, they also show voters saying their top priority is fixing the country's sputtering economy. 5. At Expo 2025 Osaka, a team of top Japanese composers has transformed the 155-hectare site into a living, breathing soundscape, with immersive music tailored to each zone and responsive to weather conditions. From celebratory festival sounds to meditative ambient compositions, the Expo's sonic environment subtly shapes every visitor's experience -- right down to the moment they leave. Through the lens This week's top photo pick: The Fairy Pool Scenic Area of Jiuzhaigou National Park, in the Tibetan and Qiang Autonomous Prefecture of China, is pictured on May 27. The Fairy Pool is called Nen'en Sangcuo in Tibetan, which translates to "a place where fairies bathe." (Photo by Getty Images) Check out more of our photo coverage here Wishing you a wonderful weekend!
Yahoo
22-03-2025
- Business
- Yahoo
Why Warren Buffett Thinks Tariffs Are ‘an Act of War' — And How He's Right or Wrong
In an interview with CBS News, billionaire investor Warren Buffett said, 'we've had a lot of experience with [tariffs]. They're an act of war, to some degree.' Many economists and international trade experts agree, even if they wouldn't put it so bluntly. Learn More: Consider This: Here's what the Oracle of Omaha means — and why most trade experts agree with him. When one country wants to force another to do something they don't want to do, they can use the threat of military force. Or they can use the threat of economic force, such as tariffs. 'Tariffs are designed not just to regulate trade but to force other nations into compliance,' explained George Carrillo, CEO of the Hispanic Construction Council. 'It typically provokes retaliation, where both sides strike back, ultimately launching a trade war.' And who pays for a trade war? The citizens of both countries — in the form of higher-cost goods. Read Next: When asked about tariffs' impact on inflation, Buffett replied: 'Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em.' Businesses that import goods don't just roll over and take the hit to their bottom line, either. They pass them on to consumers in the form of price hikes. 'Tariffs work like hidden taxes that raise prices on everything we use, from groceries to clothes to cars,' said Carrillo. 'Businesses face higher costs, jobs are lost, savings and retirement funds shrink in purchasing power. It makes you wonder: Why are we the ones paying the price for these political power struggles?' In his bestseller 'The World Is Flat,' Thomas Friedman popularized the Dell Theory of Conflict Prevention. It posits that no two countries that share major global supply chains have ever fought a hot war. If you hack apart those supply chains with tariffs, you not only launch a trade war but raise the risk of armed conflict. Fewer trade ties mean less economic incentive to keep the peace. John Anwesen, international trade attorney with Lighthill, expands on this point. 'People in countries that trade with one another meet, exchange ideas, engage in business, and develop mutual dependencies,' Anwesen said. 'Those interactions and interdependence makes them less likely to go to war.' Proponents of tariffs and trade wars argue that the U.S. has somehow gotten short shrift in international trade. But free trade has actually proven extremely kind to the U.S. economy, not just its trading partners. 'The U.S. has 20% of the world's GDP, 20% of the world's money supply, and 5% of the world's population,' noted Thomas J. Cryan, attorney and author of 'Disrupting Taxes.' 'The math tells us that international free trade has improved, and helped maintain, the U.S. economy.' One way that free trade helps both countries to grow their economies is through specialization. Ever try growing coffee beans in the U.S.? International trade isn't one-sided — it provides something of value to both parties. We wouldn't do it otherwise. 'Free trade allows countries to specialize in what they do well and trade for what they don't, and the result is a more efficient economy for all,' Cryan continued. 'The protection of a few jobs never outweighs the efficiency and cost reductions of lower prices for a broad spectrum of goods, and the creation of jobs elsewhere in the economy.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 4 Things To Watch for as Elon Musk Takes on Social Security I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money Warren Buffett: 10 Things Poor People Waste Money On 25 Creative Ways To Save Money This article originally appeared on Why Warren Buffett Thinks Tariffs Are 'an Act of War' — And How He's Right or Wrong Sign in to access your portfolio
